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Platinum Setting Up For A Big Price Anomaly

Our clients and followers have been following our incredible research and market calls regarding Gold and Silver with intense focus.  We issued a research post in October 2018 that suggested Gold would rocket higher from a base level below $1300 to an initial target near $1450 almost 9 months ago.

As of this week, Gold has reached a high of $1442.90 only $7.10 away from our predicted target level.  This has been an absolutely incredible move in Gold and we could not be more pleased with the outcome for our clients, followers, and anyone paying attention to our research posts.

Additionally, many of our clients have been asking us to share our predictive modeling research for Platinum, which has been basing near recent lows recently.  We decided to share our research with everyone regarding the information our proprietary predictive modeling tools are suggesting.

You can see from my precious metals comparison article which metal has the most upside potential looking going forward.

Also, be sure you read my exclusive Platinum prediction which is playing out exactly as expected thus far.

Todays Updated Platinum Analysis:
This first Platinum chart highlights our Fibonacci price modeling tool and provides some critical information we need to understand about Platinum right now.  The Volatility Zone, created by the range between the Bullish and Bearish Fibonacci Trigger Levels, is very large.  This is a very clear indication that implied volatility in Platinum is currently at levels near 26% of the current price.  To put that into perspective, an impulse move in Platinum could result in a $125 to $250 price breakout or breakdown, depending on price structure, before implied volatility may reduce back to normal levels.  Normal price volatility in Platinum is typically somewhere between 4.6% to 11.5%.

The next aspect of our research we want you to focus on is the rotation of the price peaks and troughs, highlighted by MAGENTA arcs we’ve drawn on this chart.  The rotation of price over the past 11+ months has been a very clear “higher price trend channel” where higher highs and higher lows have been forming.

This presents a very clear price picture for the current price levels, near the recent price lows ($765), are very likely to attempt a rally back towards levels that will attempt to set up another “new price high” – $925 or higher.  Although, we have to be very cautious of the extended volatility levels and the potential for a price breakdown into the BREAKDOWN ZONE (highlighted on the chart below).  Should price fail to attempt to move higher, then a very clear price breakdown will take, breaking the current trend channel and invalidating our bullish price predictions.

Currently, our researchers believe there is a very strong likelihood of an upside price move breaching the $818 level (highlighted by the WHITE LINE near the BLUE Fibonacci projection level) to begin the upside price move.  Once this level is breached, we would have technical confirmation that a key Fibonacci level has been tested, breached and a new upside price trend is beginning to form.  This would partially validate our upside price expectations and allow us to target a long objective near $865.

Obviously, technical traders would attempt to look for strategic entries below $805, if they present themselves.  The concept is to take advantage of the lowest risk trade entries the markets provide.  At the same time, there is plenty of room in the middle of this trade for decent profits as well.

This next chart shows our Adaptive Dynamic Learning (ADL) predictive modeling system that maps out price bars, technical data, and comparative price data into a DNA chain for future reference.  In a way, this tool attempts to “infer knowledge” by digging deeper into the price and technical data than we can attempt to do visually – then project the expected price levels well into the future.

This ADL chart is presenting two very clear outcomes.  One with much higher prices and another with lower/stagnant pricing levels that tend to weaken over time.  This result is the output of two different, side-by-side, price bars and it shows how the ADL can highlight increased volatility and what we call a “price anomaly” pattern that is setting up.

Obviously, the current price is near these lower ADL predicted levels, thus we could assume the lower predicted levels may be more accurate.  Yet, both of the ADL bars predicted that price would move lower (below $840) throughout this time-span.  Where the ADL predictions diverge is THIS WEEK and into the future.  The analysis from April 29 is suggesting that the price of Platinum should be trading near $845 right now and will breakout to much higher levels (above $930) within the next 1 to 3+ weeks.  The analysis from May 6 is suggesting that the price of Platinum will languish near $760 to $800 for the next 5+ weeks while continuing to weaken.

This is the setup of a “Price Anomaly”.  Where price is actually “out of alignment” with one key element of the ADL predictive modeling system and setting up an incredible opportunity for skilled traders. We’ve learned that either one of two things will happen…  Either price WILL revert to much higher levels as suggested by the April 29 ADL prediction OR, the price will stall near recent lows as suggested by the May 6 ADL prediction.

As a skilled trader, our job is to understand where the opportunity lies within this ADL prediction and attempt to manage the risks.

As we stated earlier in this research post, the combination of the Fibonacci and ADL predictive modeling systems are suggesting a very clear action for traders – attempt to accumulate below $800 with the expectation that price may continue to consolidate near these levels for 3 to 10+ more days.  Eventually, as our ADL predictive modeling system is suggesting, a breakout upside price move is likely to take place where the price will attempt to move dramatically higher – targeting $850 first, then possibly $935 or higher.  This is the “price anomaly reversion” trade that creates the opportunity for skilled traders.

The ADL predictive modeling system is great at suggesting where the price will attempt to target in the near future.  When it aligns with the current price, then we have some validation that price is acting normally.  When price moves against the suggestions of the ADL predictive modeling system, then we have a “price anomaly setup” and we typically wait for confirmation of the “trigger” to confirm this reversion will actually take place.  Our trigger is the WHITE LINE on the Fibonacci chart, above.  Once price closes above $818 to $820 on a fairly strong move, then we would have technical confirmation that price is attempting to establish “new price highs” and this should provide enough momentum to push the price anomaly reversion trade into a real opportunity for success.

I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next set of crisis’.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Chris Vermeulen
www.TheTechnicalTraders.com

Silver Will Pause Before Going Higher

Silver will likely find resistance near $15.60 and move slightly lower before another upside price leg takes place.  Both gold and silver have begun incredible price rallies over the past 10+ days and we believe this is just the start of a much bigger price trend.

We believe Silver, to be one of the absolute best potential trades and investment. It will likely pause just below $15.75, near the First Resistance level, rotate a bit lower (possibly towards $15.15), then attempt another rally towards the $16.50 level.

Daily Silver Chart Analysis

The $15.60 to $15.75 resistance level can be seen on this chart by our RED highlighted price peaks. Additionally, the upper RESISTANCE ZONE between $16.15 and $16.78 is a big range that has historically been a key price channel.

My cycle and trend trading indicators are suggesting this move is far from over, yet we believe this move upward will happen in advancement legs and this first leg is nearing exhaustion.  This is why we are issuing this warning to all investors right now.  We believe a downward price rotation, a stalling price pattern, will set up where a technical trader will be able to acquire silver below $15.25 again very soon.  The next leg higher may start fairly quickly as we don’t expect this rotation to extend out for many weeks.

See Our Previous Silver Breakout Prediction Call on June 7th

Monthly Silver Chart

This Monthly Silver chart with our proprietary Fibonacci price modeling system suggests upside targets of $17.00 (CYAN), $17.65 (GREEN), and $18.50 (DARK RED).  Our RESISTANCE ZONE level on the chart, above, aligns perfectly with these objectives because the price would first have to rally into the RESISTANCE ZONE and break through this level to push to any higher target levels.

Therefore, we believe this upside price move won’t run into any solid resistance until reaching above the $16.30 level and possibly as high as the $16.75 to $17.00 level.  At that point, the price of Silver should find real resistance, stall, and set up for the next breakout move higher.

At this point, if you have not been following our research and analysis of the precious metals sector and already positioned your trades for this move, you should get another chance to set up some long trades as this downside price rotation takes place.  Remember, wait for silver to fall close to or below $15.25 before targeting your new trade entry.  This bottom in silver may only last for a few short trading periods, so when it happens, be ready with your orders.

CONCLUDING THOUGHTS:

The next upside leg in Silver should rally for a total of about +6% to +10% targeting the $16.25 to $17.00 price level – the RESISTANCE ZONE.  After that price level is reached and price consolidates to likely form another momentum base, another upside price leg should push the price of Silver towards our Monthly Fibonacci price targets – somewhere towards $18.00 to $18.50 before stalling again. !

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next set of crisis’.

Chris Vermeulen
www.TheTechnicalTraders.com

GOLD CONTINUING TO BREAKOUT BUT IS A CORRECTION DUE?

Chris Vermeulen, Founder of The Technical Traders joins me to a close look into gold – what’s driving the move, what the technicals are saying about this fast move higher, and if a correction is due. We also look at the gold stocks, silver, and USD all within the context of gold.

Be Sure to check out my post on gold stopping later this year – HERE

BECOME A TECHNICAL TRADER TODAY AND
TRADE WHAT MATTERS – PRICE ACTION!
CLICK HERE

Chris Vermeulen

Natural Gas Sets Up Bottom Pattern

In less than two weeks, our prediction that Natural Gas would move lower into our “basing zone”, between $2.00 and $2.20, has come true.  Natural Gas has fallen into our expected basing/bottoming zone and traders should be looking to target low price entries as the extended setup of this base takes place.

You can read our original research post regarding our Natural Gas analysis from June 10, 2019: NATURAL GAS MOVES INTO BASING ZONE

It is our belief that anytime Natural Gas falls below $2.20, or lower, traders should consider jumping into NG related ETFs or NG future as this bottoming zone will likely push NG back above $2.35~$2.40 fairly quickly.  Historically, any price move to levels closer to $2.00 have been very strong support for Natural Gas and this early basing pattern is setting up for an incredible opportunity for traders.

Ideally, we are expecting an upside the month of July to represent continue basing/bottoming in NG where we expect NG prices to rotate between $2.00 and $2.75.  There is a moderate change that NG prices may attempt a move above $2.75 after July 20.

We believe August will result in a sideways downward sloping price pattern that may last only through the first 10 to 15+ days of August.  The month of August is typically relatively muted in terms of price trend but includes greater price volatility – bigger price bar ranges.

The big breakout move will likely begin to happen in late August or early September.  September, October, and November are all historically strong months for NG.  September is the strongest month historically, October represents about half the upside strength of September and November represents, again, about half the upside strength of October.

Overall, this basing/bottoming pattern in NG is something skilled traders do not want to lose focus of.  The opportunity at these sub $2.25 levels is incredible if traders are able to time their entries and plan for the August/September upside price launch.  Looking back at historical price patterns, we could begin an upside price bias (a slower moving upside price trend) in early July.  After NG hammers our a bottom near this $2.00 level and settles near support, the new trend should become evident as an upside price bias before the August/September liftoff.

This Daily NG chart shows the RED and CYAN Fibonacci projection levels (near $2.18 and $2.28).  These levels will act as both a floor and ceiling for the future price as the basing pattern continues.  Any breakdown in price below $2.18 would be a great entry level for skilled traders.  There is a potential that price could drift a bit lower, possibly down to near $2.00 over the next few weeks, but we believe the basing/bottoming setup is beginning and support will be found above $2.00.

This Weekly NG chart shows a BLUE rectangle that highlights the support level identified by our proprietary Fibonacci price modeling system.  Right now, this support level is between $2.10 and $2.30.  These Fibonacci downward price projection points on the Weekly chart represent expected levels/targets for downward price SUPPORT to form.  In other words, from the last price peak, price should move lower and target these Fibonacci projected targets where they will likely stall, bottom or attempt to find support – potentially setting up a new price “trough”.

We believe the next upside price move will happen between now and July 25th where NG will move from the $2.15 level to somewhere near $2.55 to $2.65.  After that move, we expect the price of NG to stall briefly before beginning another leg higher towards $3.00 or higher.  Our expectations of that last leg are that it may begin near mid-August and really begin to accelerate as we get closer/into September.

Remember, this is a very early set up – we still have 40+ days of expected basing/bottoming before any real upside potential is likely.  Now is the time to trade this as short term 4~8% price objectives taking very skilled trades near the low price levels and targeting quick profits.  As we enter July and move into August, we suggest traders switch from the short-term scalping mode and begin to consider the September, October & November historical price patterns to truly understand the upside potential.

Take a look at that huge move in 2018 over those same three months (September, October, November) in the chart above.  That move started from the $2.65 level and ran all the way up to near $5.00.  The same thing could happen again this year with price originating from a $2.00 basing level.

I can tell you that huge moves are about to start unfolding not only in the energy sector but in metals, and stock indexes and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand guide and charts. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

CONCLUDING THOUGHTS:

In short, Nat Gas is oversold and showing signs of a bounce.

As a technical analysis and trader since 1997 I have been through a few bull/bear market cycles, I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Take a look at my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own.

Chris Vermeulen
www.TheTechnicalTraders.com

Next Bull and Bear Markets are Now Set Up

Sharing market analysis and my opinions every day is far from easy and sometimes I feel like a song on repeat. My focus and goal has always been to try to alert fellow traders and investors of what is unfolding now in the financial markets around the globe because it appears we are about to experience another financial life-changing event much like the 2000 stock market top, and the late 2007 bull market top which will play out over the next 24+ months

If you lost money during the last bear market then you need a new game plan to take advantage of falling prices and the solution is not just to by gold, silver, and miners. In fact, you could lose a lot buying and holding them over the next year if you are not careful. We all know what the precious metals sector did during the last equities bear market (they crashed 64% with the stock market before starting to rally).

2007 Bull Market Top – SP500 and XAU Gold Miners Index

From a technical analysis standpoint, we are still a long ways away from a confirmed bear market. We do need a see a rather larger drop to break the December low we saw in the SP500 index. But, each month more warning signs pop up to confirm we would be in a full-blown bear market b the end of 2019.

Miners Are Outperforming US Equities – Top Is Near!

Last month I talked about how I have been waiting for gold miners to start outperforming the US stocks market. Once miners start outperforming in a big way (just like we saw in 2007), we know the stock market is topping out and something really bad is about to happen.

In the last couple of weeks, the gold miners index is up over 16% while the SP500 is up only 6%, this feels like the start-of-the-end if you know what I mean.

It’s a known fact that stock market prices lead earnings, news, and the economy. Stock prices start to flatten, chop sideways, and sell off typically 3-6 months or more before negative data starts to become daily headline news.

I have been predicting a top for form since early 2018 with the book I co-authored called “The Crash of 2019 and 2020 – How You Can Profit” only available to subscribers of the Wealth Building Newsletter.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand guide and charts. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

Concluding Thoughts:

In short, the financial markets including commodities move in a wave like pattern and you want to own them and be to long when they are rising, and in cash or sell short (inverse ETF) when they are falling.

Everyone is excited about the gold, silver, and miners market here and now, but if everyone already owns them, and is buying more, that’s the signature herd/masses set up that we could see that market pullback hard here at any time.

The reality is, we just sold our gold and miners position because we expect a pullback/correction. Just like we played that last move in metals from the Sept bottom we called and exited near the top in mid-March. I got lots of flack for selling because everyone was SCREAMING BULL MARKET FOR METALS/MINERS (just like now) but what followed, yup a multi money correction that allowed us to take the next wave in this market which we just closed the positions.

The reality is, we never know which rally will be the TRUE breakout rally, and which selloff ill be the one that starts a new down trend, but we must stick with strict trading rules for long term consistent gains. We can reenter a position at any time with a click of a button and I don’t get worked up if I don’t get in at the exact bottom or out at the exact top because that is just called luck. The key is to get the middle low-risk gains, time and time again.

FUN FACTS
FIFTEEN 5% WINNERS = 107% ROI
JUST $500 PROFIT PER/MONTH = 30% ROI WITH $25K ANNUALLY
POSITION SIZING = TRADING SUCCESS

As a technical analysis and trader since 1997 I have been through a few bull/bear market cycles, I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own.

Chris Vermeulen
www.TheTechnicalTraders.com

How To Time Market Tops and Bottoms

On this first full weekend of Summer, we thought we would revisit our June 3, 2019 research post regarding a price pattern we love to trade – the Fibonacci Extension Bounce.  This pattern sets up fairly often and the key to understanding this pattern and where these trades present real opportunity is in understanding the price dynamics behind these extensions.  There are many instances where a Fibonacci price extension level will fail to promote a price bounce or rebound – and the price will just keep trending higher or lower past the extension level.

You can read our original research post here that clearly shows the bottom and our price targets.

Pay very close attention to the price levels and setups of the charts within that June 3, 2019 post.  These setups are based on what we term a “100% Fibonacci Extension” from a previous trend reversal (peak or valley).  The concept of this trading pattern is that the initial “impulse” price move sets up the first leg of a move.  The retracement price move sets up the entry trigger for the second price leg – the next 100% price leg.  The bottom, in this case, of the second 100% price leg sets up the “end of the move” and the potential for a price rotation in the opposite direction (likely resulting in a 38% to 61%+ retracement move).

In both instances of our June 3 calls, Crude Oil and the ES followed-through exactly as we predicted.

This first chart of Crude Oil shows how price bottomed near $52 and has recently advanced to levels near $58 after reaching the 100% Fibonacci extension levels.  As this move higher extends to levels near the ORANGE moving average line on this chart and/or beyond the $58 to $59 target level we originally drew on our June 3rd charts, we would consider the upside price move “completed” based on our expectations.  Yes, these types of trend could extend even further beyond our expectations.  But our objective, as skilled traders, is to target and profit from the highest probability objectives – which was the move from $52 to near current price levels.

Follow the MAGENTA lines on these charts to see the Fibonacci Extension Pattern Setup.  They are not hard to see on the charts when your eyes are trained to identify them.

This ES Daily chart shows the incredible +230 point rally that took place after our June 3 research post and after the Fibonacci extension pattern completed.  It is really hard to miss the opportunity with a move like this.  Again, follow the MAGENTA lines on this chart to see the Fibonacci Extension pattern setup.

At this point on the ES chart, the upside price rally has resulted in a 161% (roughly) upside price advance of the previous Fibonacci Extension pattern (last leg).  This upside price leg range, 161%, suggests the upside price move should be close to ending soon.  There is a possibility that price could advance to levels near 200% of the previous price leg range, but traders would be chasing a 25% further upside advance that may only be a low probability outcome.

Our advice for skilled traders is to pare back existing open long trade positions near these new all-time highs.  The price advance appears to have reached levels that suggest the upside advance may be nearing an end point for the US stock markets.  After such a big upside price leg, we have to be cautious near these new all-time highs that further price rotation may become a concern.

Oil, on the other hand, could continue to rally because it has only advanced 61% of the last Fibonacci 100% price leg.  The global concerns regarding Iran and the US, as well as global economic concerns, could push Oil back up to the $60 to $62 level before reaching a peak.

Over the past 21+ months, we’ve highlighted some of the best tools and techniques we use to find great trading signals.  This one technique, the Fibonacci 100% Price Expansion Leg, is just one of the tools we use to find trades and targets for our trade alerts for members.

The more one understands how price works and how the markets operate as a Symphony of price actions, one can find opportunities for great trades almost all the time.  Skill and experience make the difference when deciding when to trade and what to trade and that’s what we provide.

More eye opening charts on currencies and gold here

We’ve now shown you two different price setups using Fibonacci price theory and the only thing we have to do is wait for a technical price confirmation before finding our entry trade.  We’ll see how this plays out over the next few days and weeks.  Remember, we are not proposing these as “major price bottoms”. They are “upside pullback trades” (bounces) at this point.  A bullish price pullback in a downtrend.

BECOME A TECHNICAL TRADER TODAY AND 
TRADE WHAT MATTERS – PRICE ACTION! 
CLICK HERE

Chris Vermeulen

Summer is Breaking Out—and so is Gold – Weekly Wrap-Up

Summer is Breaking Out—and so is Gold - Weekly Wrap-Up (June 21, 2019)

Today marks the summer solstice: the official first day of summer and the longest day of the year. And as gold continues its breakout, it could be a long day indeed for bankers.

On this edition of the Wrap-Up, Eric Sprott gives you all the gold and silver news you need, including:

• Why top of range targets aren’t as crazy as they might seem

• How the breakout will affect the mining shares

• Plus: Why the U.S. price will catch up fast

“I love going back to the call we had three weeks ago, when I said I’d read an article that I really believed in that suggested gold would have a rally for 5-7 weeks… We’ve had three of them now! This rally started at $1275. We’re at $1400. That gentleman, Chris Vermeulen, and I’ve got to give him credit for being prescient… The first target was $1450, but he actually thought it was going to go to $1650. And I want the listeners to think about that: $1650! What would happen?”

 

Chris Vermeulen Comments:

We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

SUBSCRIBE TO MY TRADE ALERTS AND 
GET YOUR FREE SILVER ROUNDS!
Free Shipping!

Chris Vermeulen
Founder of Technical Traders Ltd.

Precious Metals Breakout Rally or Reversal Time?

We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

SUBSCRIBE TO MY TRADE ALERTS AND 
GET YOUR FREE SILVER ROUNDS!
Free Shipping!

Chris Vermeulen
Founder of Technical Traders Ltd.

Small Caps May Lead A Market Rally

We believe a unique Pennant/Flag formation is setting up in the US stock markets. We believe the Small Cap sector may provide a better technical reference to the price breakout we are expecting in late August or early September than the mid or large-cap sectors.  The charts tell a very interesting story when comparing the different sectors to the SPY.

As most of you are well aware, the very deep selloff between October and December 2018 prompted a low price pivot point that most technical analysts are using as a reference to support. What we find interesting is that these Small Caps have really failed to mount any type of price recovery.  We believe this is because of the continued capital shift where foreign investors and institutional investors are piling into mid-cap and large-cap equities chasing dividends and safety.  The small-cap index chart may provide the best technical reference for the pennant formation and eventual breakout move.

This weekly chart of TNA highlights exactly what we are referencing in comparison to the mid-cap and large-cap charts. Pay very close attention to the support level near $53.50.  Also, notice that define panic formation setting up after the December 2018 bottom. We believe the price rotation in the small-cap index is clearer and more identifiable than the rotation in the mid-And large-cap indexes.  We also believe the small-cap index will show early warning signs of price weakness or strength after the apex of this move.

The mid-cap and large-cap weekly charts paint a very different picture than the small-cap chart. We can see the upward price slow after the bottom in December 2018 was much more aggressive. We can also see an upward sloping Pennant formation setting up between the lower, blue, price channel and the magenta upward sloping price channel from the recent lows.  Please pay close attention to the upper and lower support zones we drawn on this chart. Any future break down in price will likely find support near the upper support zone and possibly pause near this level before attempting a breakdown further if needed.

This last SPY weekly chart highlights the similarities between the made In the large-cap indexes. The way price reacts to these channels as well as creates these Pennant formations in unison is rather interesting. Compared to the small chart, the TNA, it is clear that the main and large-cap prices are moving somewhat in tandem.

At this point in the process, we are waiting for wave 3 to end and wave 4 to begin of the pennant formation.  As price continues to consolidate within the pennant range, we should take advantage of opportunities that exist within this rotation and prepare for a brief breakout to new all-time highs. After new all-time highs are reached, we believe an immediate downside price rotation will begin sometime in September 2019 and last possibly into October or November 2019 – possibly longer.

Pay attention to vertical line number 10 on this chart. This price cycle reference occurs on September 8, 2019. It also occurs right after the apex of the pennant formation between the red and magenta lines. Our researchers believe a washout high price rotation, targeting new price highs, will be the likely resulting breakout move.  After the washout high exhausts, we believe an immediate downside move will likely begin and push prices back below the 282 to 270 level while attempting to find support.  Ultimately this downside move may attempt to retest the 240 level or lower. Time will tell.

Our suggestion is to pay attention to the small-cap index in relation to the mid-cap and the large-cap symbols. We believe the small-cap sector will provide greater detail for technical analysts and researchers. Overall, every one of these charts paints a fairly clear picture. We believe our research is accurate and that the market will do exactly as we are suggesting. The only thing that we are unsure of, at this point, is where the new all-time high price level will peak.

Our ADL predictive modeling system is providing some guidance in regards to this peak level.  We will continue to provide further guidance and research as these price swings continue. It would be wise to prepare to trade a tightening price channel as this pennant formation continues – then be prepared for some very big price swings in late August and all through September.

We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

SUBSCRIBE TO MY TRADE ALERTS AND 
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Chris Vermeulen
Founder of Technical Traders Ltd.